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Loans - Federal |
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2007-2008 Loan Processing |
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Click here for information on the Family Federal Education Loan Programs and loan processing for the 2007-2008 Academic Year. |
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2008-2009 Loan Processing |
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Begining with the 2008-2009 Academic Year, Northeastern University will be a full participant in the William D. Ford Federal Direct Loan Program. As a full Direct Loan particiant, Notheastern University will no longer be able to certify Federal Stafford and PLUS Loans through the Family Federal Education Loan Program (FFELP) after the 2007-2008 Academic Year.
The Direct Loan program offers many benefits to Northeastern students and parent borrowers, including:
• Consistent access to loan funds directly from the U.S. Department of Education
• Competitive rates and repayment options available to all borrowers
• Simple application process
• Quick receipt of funds
• Excellent customer service
Click on a link for additional information on the following Federal loans:
Federal Stafford Loan
Federal PLUS Loan
Federal Perkins Loan, Health Professions Loan, Nursing Loan |
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Federal Direct Stafford Loan
This loan may be subsidized, unsubsidized, or a combination of both. With a subsidized loan, which is awarded based on financial need, the federal government pays interest that accrues while you are in school. The unsubsidized loan is not based on need; interest that accrues while in school must either be paid monthly or deferred and capitalized (added to the original loan balance). Loan eligibility is determined by the Office of Student Financial Services.
Interest rates for Federal Direct Subsidized Stafford Loans during 2008-2009 is a fixed 6% for undergraduates and 6.8% for graduate students. The interest rate for all Federal Direct Unsubsidized Loans is a fixed 6.8%. There is a .5% origination fee (which is net of a 1.5% up-front rebate that assumes 12 on-time monthly payments) deducted from the proceeds of the loan. Loan funds are disbursed directly to Northeastern in equal amounts over each term of enrollment for the academic year. There is a 6-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status. See the section entitled Loans-Repayment for additional information on repayment options.
In order for first-time borrowers to receive Stafford Loan funds, the online Federal Entrance Interview and Stafford Loan Master Promissory Note (MPN) must be completed. The Federal Entrance Interview is located on myNEU. The Stafford Loan MPN can be completed at www.dlenote.ed.gov.
Maximum Annual Loan Totals
• Dependent Undergraduate Students
Depending on financial need, the annual amount may be subsidized. If the student does not have financial need, this amount will be replaced with an unsubsidized loan. In addition, all students are eligible for an additional $2,000 in unsubsidized Stafford funds.
- Freshmen: $3,500
- Sophomores: $4,500
- Middlers, Juniors, and Seniors: $5,500*
*The aggregate maximum (cumulative total for all schooling) is $31,500 of which $23,000 can be subsidized.
• Independent Undergraduate Students
The subsidized amounts listed below are awarded based on financial need. If the student does not have financial need, this amount will be replaced with an unsubsidized loan.
- Freshmen: $3,500 subsidized, $6,000 unsubsidized
- Sophomores: $4,500 subsidized, $6,000 unsubsidized
- Middlers, Juniors, and Seniors: $5,500* subsidized, $7,000 unsubsidized
*The aggregate maximum (cumulative total for all schooling) is $57,500 of which $23,000 can be subsidized.
• Graduate and Professional Students
The annual maximum is $20,500. Depending on financial need the first $8,500 may be subsidized.
The aggregate maximum (cumulative total for all schooling) is $138,500 of which $65,500 can be subsidized. |
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Federal Direct PLUS Loan
The federally sponsored PLUS loan is a low-interest student loan for graduate level students and the parents of dependent undergraduate students, who are attending at least half-time. The interest rate is a fixed 7.9%. There is a 2.5% origination fee (which is net of a 1.5% up-front rebate that assumes 12 on-time monthly payments) deducted from the proceeds of the loan. Loan funds are disbursed directly to Northeastern in equal amounts over each term of enrollment for the academic year. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid. PLUS loans must be processed according to federal regulations, which stipulate that a loan cannot be processed after the end of the loan period. Thus, you cannot use a federal PLUS loan to pay a back balance.
• Parent PLUS
The borrower can be the biological or adoptive parent (or, in some cases, the stepparent) and must be a U.S. citizen or permanent resident. Repayment begins 60 days after the loan is fully disbursed, and extends up to 10 years. Application requests are submitted to Student Financial Services. If a parent is denied a Federal PLUS loan due to credit reasons, the parent may appeal the denial with the Direct Loan Servicing Center or reapply with a credit-worthy co-borrower. The Direct Loan Servicing Center can be reached at (800)-848-0979.
Parents can choose to defer payments on a PLUS loan until 6 months after the date the student ceases to be enrolled at least half time. Accruing interest can either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
2008-2009 Federal Direct Parent PLUS Loan Application
In order for first-time parent borrowers to receive PLUS Loan funds, the online PLUS Loan Master Promissory Note (MPN) must be completed. The PLUS Loan MPN can be completed at www.dlenote.ed.gov.
• Grad PLUS
Unlike other federal loans, the Grad PLUS loan requires credit approval by the lender. Application requests are submitted to Student Financial Services. Students have up to 25 years to repay the Grad PLUS loan, beginning 60 days after the final loan disbursement. The Grad PLUS loan can be consolidated with federal Stafford and Perkins loans upon graduation.
2008-2009 Federal Direct Graduate PLUS Loan Application
In order for first-time borrowers to receive PLUS Loan funds, the online Federal Entrance Interview and PLUS Loan Master Promissory Note (MPN) must be completed. The Federal Entrance Interview is located on myNEU. The PLUS Loan MPN can be completed at www.dlenote.ed.gov. |
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Federal Perkins Loans, Health Professions Student Loans, and Nursing Student Loans
These federal loan programs carry a 5% interest rate during repayment. You must demonstrate financial need and meet Northeastern's priority filing date for consideration, as funds are limited. Northeastern serves as the lender, and the loan is made with government funds. Repayment is made to Northeastern.
For Perkins Loans, there is a 9-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status. The grace period is 12-months for Health Professions and Nursing Student Loans. Repayment on the loan is for a period of up to ten years with a minimum $50 monthly payment. The loan may be prepaid at any time without penalty.
To be eligible for the Health Professions Loan Program applicants must be enrolled full-time in the School of Pharmacy in the Bouvé College of Health Sciences. To the eligible for the Federal Nursing Student Loan applicants must be enrolled full-time in the School of Nursing in the Bouvé College of Health Sciences. |
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